My wife and I bought a car from a dealer here locally. We signed the retail installment sales contract, and traded in our other vehicle. We have had the new car for 23 days now. Last week the lender that suposedly "approved" our loan called to verify my wifes income. However, after talking to them it was very clear that the dealership submitted fraudulent documents to them in my wifes name, stating that my wife made more money and worked at a child care she had never heard of. My wife told them she had never worked there, nor heard of such place. Yesterday the dealership calls and tells us they have "good news" they have found a better deal with another lender at a better interest rate. I believe this is a spot delivery scam, in violation of AZ UDAP laws and Federal Truth in Lending Act. Am I correct? Also, they have already paid off our trade in with our previous lender. We actually received a refund check for $6 today due to overpayment. What are my legal actions? Can I just take the car back to them and they are stuck with the car they paid off?
June 03, 2012
Steven Daily: ...
Luke, "Spot delivery" -- turning over a car to a buyer before financing is completely finalized -- is not illegal, but it is subject to abuse. It is hard to say for sure what exactly is happening in this case, because I'm unclear on what exactly the dealership wants from you. I would be suspicious about the supposedly "better" deal until you have seen it in writing. If the terms are actually worse, then this sounds like a "Yo Yo" scam. Get the details in writing, and if you can, go to the dealership in a different car than the one you bought just to maintain your leverage.
June 04, 2012
Shari Capaldi: ...
I bought a used car a 2003 VW passat from a used dealership with a three month warrenty. One week before the warrenty was up the car started making a loud noise and the lights came on the oil light and STOP engine.light, took the car to a macanic and he said it looks bad that the "screen' was clogged and it could potentialy blow the engine.Called the dealership and the owner is refusing to take responcibility. What now? Please help